How economic growth is calculated

The 2021 economic census would apply information technology in implementation to increase accuracy and reduce costs. — VNA/VNS Photo Mai Phương

HÀ NỘI — The General Statistics Office (GSO) officially kicked off the 2021 economic census on Monay to have a comprehensive evaluation of the Vietnamese economy.

Carried out under the Prime Minister’s Decision No 307/QĐ-TTg dated February 27, the economic census aimed to assess the development in the number, size and labour of economic entities, production and business results, the level of information technology application, structure of economic establishments labours by localities, economic sectors and ownership forms to serve the State management.

The census also aimed to review official statistical indicators, such as gross domestic product (GDP) and gross regional domestic product (GRDP) and to develop economic database.

The 2021 census would be conducted via Web-form and computer-assisted personal interviews (CAPI).

To May 30, the survey would be conducted on business establishments, branches and representative offices of foreign enterprises, associations, organisations and licensed non-Government organisations.

From July 1 to July 30, the information would be collected for individual non-agricultural, forestry and fishery establishments as well as religious establishments.

The preliminary results would be announced in December and the official results would be announced in the second quarter of 2022.

GSO said that the economic census was a very important survey which would help provide data of all economic sectors and understand thes structure of GDP to be the premise for the calculation of GDP and GRDP with the highest accuracy.

It would reflect the situtation of the economy and of every economic sector and every locality.

GSO said that the application of information and technology in conducting the census was expected to ensure the quality of the collected data and to reduce implementation costs. — VNS

Võ Trí Thành

*Võ Trí Thành

Việt Nam has outlined its next-decade of socio-development strategy, setting its sights on becoming a developed and upper-middle-income country with modern industry by 2030. However, as success in the past cannot guarantee future triumphs, what are the keys to Việt Nam’s success in the next period?

We have talked about Việt Nam’s aspirations to become the next Asian economic dragon and the country has made great strides towards its goals. Amid a volatile world and unprecedented challenges arising from the pandemic, Việt Nam’s success in response to COVID-19 has been praised by international media. To ensure long-term growth, the country is also seeking solutions to key issues such as structural reforms, sustainable and inclusive development and innovation.

After many phases of reforms, Việt Nam has basically achieved its goals such as ensuring macroeconomic stabilisation, expanding more opportunities for all economic subjects to develop through institutional reforms, building a socialist market-oriented economy and promoting international integration.

Along with that, national capacity has been significantly improved which has been seen in strengthened institutional capacity, reflected in the more efficient State apparatus, enhanced capacity of enterprises through their greater competitiveness and sustainable development strategy and lastly the better-quality human resources.

Despite the fast-changing world, lessons and experiences from past reforms have significant value for further success which can be seen in many Vietnamese success stories.

When talking about the building of a socialist market-oriented economy, from a centrally planned economy in the early 1980s with little knowledge about the market economy, this has become the red thread throughout the country’s reform process.

Việt Nam has learnt and built regulations and good practices for the market through working experience and co-operation with well-known international institutions such as the United Nations, World Bank, International Monetary Fund and Asia Development Bank, collaboration with foreign experts, study exchanges and capacity building support from Asian and European countries.

Along with the country’s development progress, Việt Nam is perfecting its legal framework and improving the business investment environment to facilitate economic development activities. Building a modern and integrated economy, transparent and capable State apparatus is a must for sustainable development.

From the global integration lessons, Việt Nam joined the Association of Southeast Asian Nations (ASEAN) in 1995, since then, it has signed dozens of free trade agreements (FTAs) with many countries, including high-quality trade pacts such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Việt Nam Free Trade Agreement (EVFTA).

Partnering with developed countries with advanced institutional development has helped Việt Nam recognise the importance of expanding the development space in association with domestic reforms, developing the capacity and competitiveness and confidence of homegrown enterprises.

Vietnamese enterprises have taken long strides from fearing to compete with foreign competitors to understanding the game and starting to build their competitiveness. Some have even reached out to the world and initially established brands in global markets such as Vinfast, Viettel, FPT Corporation, Vinamilk and Trường Hải Auto Corporation. We all hope they will succeed in the future.

From past lessons, Việt Nam can identify important factors that will determine its future success. First, we need to dare and know how to play with bigger and better-performing players. With this strategy, the country has learned and grown at all important dimensions including levelling up the national, corporate and human ranks; better understanding our own values, knowing our advantages to sharpen our competitive advantage.

Besides, playing with big countries will create pressure and push to go further more aggressively and with time, the country can build greater confidence, which is very important for global integration and success.

From Việt Nam’s success in controlling the pandemic and maintaining economic growth, besides learning from other countries, the nation has prepared for fighting against the disease and even come up with Vietnamese-style solutions. Vietnamese creativity is also shown in many other key issues such as digital transformation and policy planning.

Actively learning, building confidence and promoting creativity and innovation will help Việt Nam build its image, enhance its position and expand its influence outside, attaining its development goals.

*Võ Trí Thành is a senior economist at the Central Institute for Economic Management (CIEM) and a member of the National Financial and Monetary Policy Advisory Council. The holder of a doctorate in economics from the Australian National University, Thanh mainly undertakes research and provides consultation on issues related to macroeconomic policies, trade liberalisation and international economic integration. Other areas of interest include institutional reforms and financial systems.

Foreign visitors walk in Điện Biên Phủ Street, Hà Nội. Việt Nam was the only country among 10 member states of the ASEAN to see improvement in Brand Finance’s Global Soft Power Index Report 2021. — VNA/VNS Photo Lâm Khánh

HÀ NỘI – Việt Nam has climbed three spots to rank 47th out of 105 countries in Brand Finance’s Global Soft Power Index Report 2021.

Việt Nam was the only country among the 10 member states of the Association of Southeast Asian Nations (ASEAN) to improve its ranking this year.

Its overall score was 33.8 out of 100 points, 2.5 points higher than last year, putting it ahead of the Philippines (53rd), Cambodia (89th) and Myanmar (90th).

Among other ASEAN countries, Singapore was 20th, Thailand 33rd, Malaysia 39th, and Indonesia 45th.

According to Brand Finance, the improvement was largely due to the fact that Việt Nam has managed the COVID-19 pandemic extremely well.

“Việt Nam was spared a year of lockdowns and besieged hospitals, and has one of the lowest COVID-19 infection and death rates in the world,” the report said. “Not only is the response to the pandemic impressive – given its shared border with China – but Việt Nam also experienced one of the highest economic growth rates globally in 2020 – one of a handful of countries with positive growth in 2020.”

Prime Minister Nguyễn Xuân Phúc has approved the Việt Nam National Brand Programme from 2020 to 2030, which aims to increase the value and ranking of the national brand while targeting more than 1,000 products to become strong national brands.

The brands from the country are managed through efforts and initiatives undertaken by the Ministry of Industry and Trade (MoIT)’s Department of Trade Promotion (Vietrade), under their ‘Việt Nam Value’ programme.

At a national level, Việt Nam has established diplomatic relations with 187 out of 193 member states of the United Nations and completed the process of negotiating and signing new-generation free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Việt Nam Free Trade Agreement (EVFTA), making the country an important factor in regional and intraregional economic links.

At the same time, Vietrade and the MoIT have supported Vietnamese enterprises to improve their capacity through consulting business development, establishing information systems and updating branding knowledge.

All these initiatives and efforts have helped increase the awareness of the public, international consumers, and customers about the programme and Việt Nam Value products through various domestic and international media channels.

The MoIT also focuses on promoting geographical indications and collective marks of Việt Nam in foreign markets and helping improve the competitiveness of businesses based on quality reputation, environment-friendly production, and professionalism.

The Brand Finance Global Soft Power Index is a research study on the perceptions of 100 nation brands from around the world. It surveys the public as well as specialist audiences, with responses gathered from more than 75,000 people across some 100 countries. — VNS

An aerial view of HCM City (Photo: Vietnamnet)

It aims to make the city a hub for AI research, implementation, and technology transfer in Vietnam and among the leading such facilities in Southeast Asia at large.

Nine projects and tasks will be carried out to 2030, with a detailed timeline.

AI is hoped to play a major role in building innovative urban areas and smart city development in the southern metropolis, facilitating sustainable economic growth.

HCM City aims to complete a portal for AI solutions and conduct a survey on demand for the application and development of the technology during 2021-2022.

AI is hoped to play a major role in building innovative urban areas and smart city development in the southern metropolis (Photo: Barrons.com)

It has set a target of concluding projects on building digital infrastructure and AI-related policies, and establishing centres for AI research, technology transfer, and human resources between 2021 and 2025.

A day for information technology and AI businesses will be assigned in the time to come.

The HCM City Department of Information and Communications will be coordinator of the programme, whose budget will come from the city and sectors in science-technology, along with social sources./.VNA

The HCM City – Long Thành – Dầu Giây Expressway is expected to be widened to 10-12 lanes. The Ministry of Transport has urged localities in the southeast region to improve transport infrastructure over the next five years. — Photo courtesy of Đồng Nai Department of Transport

HCM CITY — The Ministry of Transport has urged localities in the southeast region to speed up major transport projects by diversifying the sources of capital over the next five years.

Speaking at a recent online meeting, Nguyễn Văn Thể, Minister of Transport, said: “A lack of regional connectivity and overloaded roads at major gateways remains an issue in the region.”

Thể has urged localities in the region to speed up implementation of major projects in the region in the 2021-2025 period, with priority given to the expansion of HCM City – Long Thành – Dầu Giây expressway, and construction of Bến Lức – Long Thành expressway, Biên Hòa – Vũng Tàu expressway, HCM City – Mộc Bài, and Ring Roads 2 and 3.

Other projects include construction of the Long Thành – Thủ Thiêm light railway connecting HCM City to the new Long Thành airport, and the expansion of Provincial Road 25C from HCM City to Đồng Nai Province.

Recently, PM Nguyễn Xuân Phúc approved the Ministry of Transport’s proposal to give HCM City the authority to approve investment decisions for the HCM City-Mộc Bài Expressway.

The 53.5km-long expressway will link Ring Road No 3 in HCM City’s Hóc Môn District with Mộc Bài International Border Gate between Việt Nam and Cambodia in Tây Ninh Province.

The expressway project will be divided into two investment phases. Its total capital is estimated at nearly VNĐ13.6 trillion (US$586.8 million), including cost for site clearance sourced from the State budget.

The first stage will cost VNĐ10.7 trillion (($461.7 million) under a Public-Private Partnership investment.

Construction is expected to be completed by 2025 with at least four lanes, and will be expanded to six or eight lanes by 2045.

The HCM City Department of Transport has asked the Ministry of Planning and Investment to allocate VNĐ3.281 trillion in the 2021-2025 period to widen the HCM City – Long Thành – Dầu Giây Expressway and its surrounding roads.

Trần Văn Thi, director of the Mỹ Thuận Project Management Board, said that expansion of the expressway was urgently needed to ease overloading, especially when the Long Thành international airport opens at the end of 2025.

He said that a 24km section of the expressway, connecting HCM City with Long Thành international airport, should be implemented first.

He also asked the Ministry of Transport and the Ministry of Planning and Investment to allocate medium-term capital sources for the 2021-2025 period with priority given to the use of state budget or from official development assistance (ODA).

The southeast region, which accounts for 40 per cent of the country’s total budget revenue and 38 per cent GDP, is the focal economic region in Việt Nam, according to Thể.

It includes HCM City and Bà Rịa-Vũng Tàu, Bình Dương, Bình Phước, Đồng Nai, and Tây Ninh provinces. However, the region’s transport structure is far below the needs of its economic and social growth potential.

There are only two expressways in the region: the HCM City-Long Thành-Dầu Giây and HCM City-Trung Lương.

Road transport plays a key role in the region, serving about 80 per cent of all freight transport from the provinces in the region to HCM City, causing serious congestion on HCM City-Trung Lương Expressway and National Road 51.

The National Road 22 from HCM City to Tây Ninh Province has also become congested with the number of vehicles increasing by 8 per cent annually, according to the Ministry of Transport.

The Cái Mép – Thị Vải deep-water port in Bà Rịa – Vũng Tàu Province is the international gateway to the region. The port is one of more than 20 ports in the world that can be accessed by container ships of over 200,000 tonnes.

When the first phase of Long Thành international airport in Đồng Nai Province opens slated for 2025, a new hub of the aviation industry will be formed in the region.

Experts said the region should focus on investment in traffic infrastructure to enhance linkages between the port, the international airport and industrial parks in the region to boost socio-economic development. — VNS

A nurse fills a syringe with the AstraZeneca Covid-19 coronavirus vaccine at a health care centre in Seoul on February 26, 2021, as South Korea starts coronavirus vaccination campaign.(JUNG YEON-JE / POOL / AFP)

Beginning at 12:30 pm local time (1130 GMT), the meeting is the first in post for US President Joe Biden’s new Treasury Secretary Janet Yellen, expected to be far less confrontational than Donald Trump’s representatives at past gatherings.

“With the new American administration, it will certainly be easier to reach a deal” for increased aid to poorer nations, international economy professor Lucia Tajoli of Milan’s Polytechnic business school said.

Bu while “Joe Biden’s approach to international cooperation is much more open… it won’t be easy to gather funds given the economic crisis hitting many countries,” she added.

On Thursday, Washington urged wealthy G20 countries to launch a truly global, coordinated vaccination campaign.

“Without access to vaccines, low-income countries in particular will experience further tragic loss of life and needlessly delay their economic recoveries,” Yellen wrote in an open letter to G20 finance counterparts.

– New moves on debt –

Yellen also signalled openness to issuing new so-called Special Drawing Rights (SDRs) at the International Monetary Fund to worse-off countries, reversing a Trump position.

Several G20 countries have already suggested the move, after the financial instruments — which can be exchanged for US dollars, euros, Chinese renminbi, Japanese yen or British pounds — proved their worth as crisis firefighting tools in 2009.

Financial crisis-era SDR allocations amounted to around half the $500 billion now under discussion.

Last year, the rich country club also agreed a pause in debt interest payments for the poorest countries, extending it until June 30 this year.

And in November the G20 finance ministers agreed a framework for reducing debt burdens.

So far Chad, Zambia and Ethiopia have asked for their debt to be restructured.

“Debt alleviation, which had been swept under the rug, is now on the agenda and we can certainly expect a step forward,” said Federico Niglia, an international relations professor at Rome’s Luiss university.

So far just 46 of the 73 eligible countries have delayed debt interest payments worth a total of $5.7 billion.

– ‘Diverging dangerously’ –

The debt question deals with minuscule amounts compared with the $14 trillion mobilised by G20 countries to reboot their own pandemic-hit economies.

IMF chief Kristalina Georgieva on Wednesday warned that “the prospects for recovery are diverging dangerously across countries and regions”, mainly due to “a slow rollout of vaccines” in most of the world.

The global body has forecast a 5.5 percent rebound in worldwide GDP this year, followed by 4.2 percent growth in 2022.

But “it is going to be a long and uncertain ascent”, Georgieva said.

The G20 gathering will also turn its gaze onto international finance, as although markets have proved resilient through the health crisis, borrowing costs have risen sharply since early February.

One factor is Biden’s planned $1.9 trillion stimulus programme for the US economy.

Luiss professor Niglia noted that investors fear that “an uncontrolled rebound in the global economy could trigger a surge in inflation”.

AFP